In a Time Charter, who bears the cost induced from weather delays?

In a Time Charter, who bears the cost induced from weather delays?

• A. Charterer
• B. Head Owner
• C. Disponent Owner
• D. Broker

Answer: (A)

In a time charter, the charterer pays for the vessel’s time and bears the economic impact of delays that eat into the agreed loading/unloading window. Weather delays extend the time the ship is on hire, so they affect laytime. When loading or discharging overruns the laytime because of weather, demurrage is due from the charterer to the owner for each extra day. So the cost from weather delays falls on the charterer. The head owner simply owns the vessel, the disponent owner operates it under the charter, and the broker is only a facilitator; none of them bear these time-related costs.

In a time charter, the charterer pays for the vessel’s time and bears the economic impact of delays that eat into the agreed loading/unloading window. Weather delays extend the time the ship is on hire, so they affect laytime. When loading or discharging overruns the laytime because of weather, demurrage is due from the charterer to the owner for each extra day. So the cost from weather delays falls on the charterer. The head owner simply owns the vessel, the disponent owner operates it under the charter, and the broker is only a facilitator; none of them bear these time-related costs.